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Home  >>   Daily News  >>  Indonesia  >>Economy>>Indofood sees profit almost halved amid weakening rupiah
NEW UPDATES Asean Affairs  3 November 2015  

Indofood sees profit almost halved amid weakening rupiah

Publicly listed consumer goods giant PT Indofood Sukses Makmur saw its net profit drop by nearly half during the first nine months of the year owing to lower commodity value and weakening of the rupiah.

Indofood booked net profit of Rp 1.68 trillion (US$123.80 million) during January to September this year, or down by 45.2 percent year-on-year (yoy) from last year’s Rp 3.07 trillion.

Its costs of goods sold slightly up 1.05 percent yoy to Rp 34.70 trillion.

The firm’s consolidated net sales, however, climbed 1.45 percent yoy to Rp 47.56 trillion from Rp 46.88 trillion in the same period last year.

The company’s consumer-branded products (CBP), wheat flour unit Bogasari, agribusiness and distribution group accounted for 50 percent, 24 percent, 18 percent and 8 percent of total net sales, respectively, according to the company’s statement on Friday.

Indofood president director and CEO Anthoni Salim said macroeconomic conditions over the last few months had challenged its businesses.

“Weak crude palm oil [CPO] price and the value of the rupiah have adversely affected our net profit,” he was quoted as saying in the statement.

The company’s subsidiary, PT Salim Ivomas Pratama, which runs integrated agribusiness, saw its net profit nosedive 86.91 percent yoy to Rp 74.38 billion year-to-date (ytd) from Rp 568.14 billion in the same period last year, according to the company’s financial report submitted to the Indonesia Stock Exchange (IDX) on Thursday. Its sales declined 6.59 percent yoy to Rp 10.06 trillion this year.

Indofood’s PT London Sumatra Indonesia booked a 33.48 percent yoy net profit decline to Rp 469.70 billion in the same period this year, while its sales dropped 12.5 percent to Rp 3.08 trillion, its financial report read.

However, Indofood’s CBP recorded positive growth during the first nine months.

Publicly listed Indofood CBP booked Rp 24.10 trillion in consolidated net sales, or 5.80 percent higher yoy than Rp 22.78 trillion recorded last year.

CBP’s various businesses, which are noodles, dairy products, snack foods, food seasonings, nutrition and special foods and beverages, contributed around 65 percent, 18 percent, 6 percent, 3 percent, 2 percent and 6 percent, respectively.

The firm’s net profit also rose by 16.19 percent yoy to Rp 2.44 trillion during the January to September period this year.

Investa Saran Mandiri analyst Kiswoyo Adi Joe said on Friday that positive performance recorded by Indofood CBP could not help offset Indofood’s financial situation as a whole because of the latter’s structure as a holding company.

“Indofood has no business core,” he said, adding that the firm’s integrated business had let its performance get pulled down by the falling CPO price and volatile rupiah that weakened its business units, such as Bogasari, whose wheat was purely imported.

The rupiah lost around 16 percent of its value from January to September this year. The currency dropped 0.48 percent on Friday to close the day at 13,684 per US dollar.

Meanwhile, Indofood’s shares, traded at the IDX as INDF, closed the day at 5,525 on Friday, or 2.21 percent lower than on Thursday. Meanwhile, Indofood CBP (ICBP) traded at 13,200 on the same day, slightly down 0.94 percent from Thursday.



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This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


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